The Nasdaq chart shows Apple's stock performance over the past five years.
Today, Apple is the first US company to reach a market capitalization of $ 1.5 trillion. The stock rose despite investors retiring in many other areas of the economy.
The reasons for the optimism of investors are the expectation of the introduction of a 5G iPhone in autumn, signs of strong sales in the App Store and the interest in the potential of ARM-controlled Macs. This emerges from a Bloomberg report yesterday, according to which Apple may announce an ARM transition at its annual developer conference later this month.
Yesterday and today, Apple's move went against most of the rest of the market, where investor action in a report released today reflected fear of the global corona virus resurgence and anticipation of bad news from the Federal Reserve.
Market capitalization essentially means the total number of shares in a company traded multiplied by the current trading value of a share in that company, making it the best publicly available measure of the actual value of the company.
Apple's valuation on the stock markets has recovered dramatically in the past two years, despite two major investor panics: one at the turn of 2018 and 2019, when iPhone sales were reported to decline, and another when the pandemic first set foot in China summed up. Earlier this year, where many of Apple's key businesses and partners are located.
It should be noted that Apple has launched an aggressive campaign to buy back some of its own shares to reduce its cash reserves, which many investors found excessive – but a measure of market capitalization explains this.
After concerns over Apple's excessive reliance on iPhone in 2018 and 2019, the company sought to offer more services and produce content that at least partially offset the slowdown in smartphones that also affects competitors could. In general, investors were satisfied with the progress made.
Along with this service and content push, the anticipation for ARM-based Macs that could offer consumers a competitive advantage, the optimism about the prospects for a 5G iPhone and the interest in the long-term potential of Apple's explorations of health and augmented reality die Technology seems to have given investors enough to be optimistic.
However, today's stock market is nothing, if not volatile. Time will tell whether the growth continues or whether the shareholders become nervous again.